Essays on central banking
Abstract
This study consists of three papers on central banking policies. The first paper analyzes the policy rule for the last three Federal Reserve administrations. It is found that although the parameters characterizing the behavior of the private sector remain stable across the periods, there has been a structural break for the parameters which characterize the preferences of the Federal Reserve after Paul Volcker was appointed as the chairman. The accommodative characteristics of monetary policy were replaced with a more active policy towards controlling inflation. The second paper tests for the implications of the time inconsistency problem for monetary policy in Turkey. It is found that the time inconsistency problem can successfully explain the long run behavior of inflation and output in Turkey for the last decade. The third paper analyzes the relationship between Central Bank Independence (CBI) and inflation by using a panel data model. After CBI is viewed as an institutional feature of the economy and other factors are controlled for, it is found that there is no significant relationship between CBI and inflation. The only significant institutional variable is found to be the political stability.
Recommended Citation
Umit Ozlale,
"Essays on central banking"
(January 1, 2001).
Boston College Dissertations and Theses.
Paper AAI3021589.
http://escholarship.bc.edu/dissertations/AAI3021589
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